Pilgrim's Pride gets OK for $450 million in financing

PITTSBURG, TEXAS — Last week Pilgrim's Pride Corporation received final approval from the United States Bankruptcy Court for the Northern District of Texas of its $450 million debtor-in-possession financing facility arranged by Bank of Montreal as lead agent. Earlier in December, the company had received interim approval to access up to $365 million of its $450 million debtor-in-possession financing facility pending a final hearing.

When combined with cash flows generated from ongoing operations, the D.I.P. financing facility allows the company to continue its business operations on a normalized basis consistent with its pre-bankruptcy practices, according to Pilgrim’s Pride.

On Dec. 1, the company filed voluntary Chapter 11 petitions and the Chapter 11 cases are being jointly administered under case number 08-45664. Pilgrim’s operations in Mexico and certain operations in the United States, however, are not included in the filing and continue to operate as usual outside of the Chapter 11 process.